White House and Treasury Say Crypto Market Must Move Forward Without Clarity Act Hope

White House crypto adviser Patrick Witt and Treasury Department assistant secretary for financial institutions Luke Pettit said the focus of U.S. crypto policy is shifting from pending legislation to the actions of market regulators.

Clarity Act unlikely to survive the lame‑duck session

Both officials noted that the Senate recently failed to advance the Digital Asset Market Clarity Act, the industry’s top legislative priority. They added that the brief “lame‑duck” period after the November elections is unlikely to revive the bill, especially if the partisan balance in Congress changes.

Regulators now carry the burden

Witt emphasized that recent activity at the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) shows regulators are moving quickly on crypto rules. He warned against waiting for a legislative win and urged the administration to use its existing authorities, even if those rules may face legal challenges.

GENIUS Act remains a priority

Despite the setback on the Clarity Act, the Treasury and banking regulators continue to implement the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, which was signed into law last year. Pettit, a former Senate staffer on the bill, said agencies are on track to meet the law’s near‑term deadlines for stablecoin rulemaking.

Industry response

Witt observed that firms are already positioning themselves as “GENIUS‑compliant” even though final rules are not yet in place. He expects a two‑tier stablecoin market to emerge, with compliant tokens likely gaining a competitive edge as U.S. oversight expands.